Completed an industrial development project, in which the Company has a
68.8% economic interest, of a single tenant, refrigerated distribution
centre, consisting of 282,134 square feet (100%) of rentable area and
is fully leased on a triple net basis for a term of 15 years. The
tenant, a major Canadian food manufacturer, will utilize this facility
as its distribution centre for Eastern Canada;

The Company's other development projects continue to progress on
budget. A further $22.0 million (Morguard's share) was invested in
properties under development during Q3 2013;

Reflecting significant acquisition activity that occurred in late 2012
and in the first half of 2013:

Total revenues increased by 27.7% to $135.9 million compared to $106.4
million in 2012;

Net operating income ("NOI") increased by 28.3% to $55.6 million as
compared to $43.4 million in 2012;

Consolidated funds from operations increased by 31.2% to $51.7 million,
or $4.08 per share, compared to $39.4 million, or $3.07 per share in
2012; and

Total assets as at September 30, 2013 were $5.2 billion, a 17.3%
increase over December 31, 2012.

All amounts in thousands of Canadian dollars, except for per share
amounts, unless otherwise noted.

FINANCIAL HIGHLIGHTS

Three months ended September 30,

Nine months ended September 30,

(In thousands of dollars)

2013

2012

2013

2012

Revenue from income producing properties

$111,199

$79,341

$305,211

$233,565

Management and advisory fees

18,953

21,491

51,109

56,079

Interest and other

2,528

4,213

9,223

12,153

Sales of product and land

3,174

1,337

11,218

3,871

Total revenues

135,854

106,382

376,761

305,668

Revenue from income producing properties

$111,199

$79,341

$305,211

$233,565

Property operating costs and realty tax expense

(53,563)

(35,613)

(144,182)

(103,894)

Land lease arbitration expense

(2,005)

(355)

(22,518)

(1,065)

Net operating income

$55,631

$43,373

$138,511

$128,606

Consolidated funds from operations (FFO)

$51,653

$39,370

$125,472

$107,280

Consolidated FFO per share - basic and diluted

$4.08

$3.07

$9.87

$8.32

Net income attributable to common shareholders

$68,146

$119,449

$190,745

$262,385

Net income per share - basic and diluted

$5.38

$9.32

$15.00

$20.36

NET INCOME

The Company's net income attributable to common shareholders for the
three months ended September 30, 2013, was $68.1 million ($5.38 per
share) compared to $119.4 million ($9.32 per share) for the same period
in 2012. The decrease in net income of $51.3 million for the three
months ended September 30, 2013, was primarily due to the net decrease
in fair value gains of $44.4 million, an increase in interest expense
of $7.1 million, a decrease in management and advisory fees of $2.5
million, a decrease in interest and other income of $1.7 million and an
increase in income taxes of $9.3 million. These items were partially
offset by an increase in NOI from the acquisitions completed in 2012
and 2013 of $13.6 million, an increase in equity income from
investments of $1.0 million, a decrease in property management and
corporate expenses of $1.9 million and a decrease in other income of
$2.1 million.

NET OPERATING INCOME

(In thousands of dollars)

Three months ended September 30,

Nine months ended September 30,

2013

2012

2013

2012

Net operating income - Canadian properties

Multi-unit residential - Canada

$13,939

$13,555

$42,000

$41,869

Hotel

1,918

269

3,793

538

Retail - Canada

8,058

8,069

26,274

24,758

Office and industrial

10,319

10,655

30,004

30,394

34,234

32,548

102,071

97,559

Net operating income - U.S. properties in U.S. dollars

Multi-unit residential - U.S.

US$16,844

US$5,196

US$40,046

US$14,057

Retail - U.S.

US$5,700

US$6,036

US$17,475

US$17,981

US$22,544

US$11,232

US$57,521

US$32,038

Exchange amount to Canadian dollars

858

(52)

1,437

74

Net operating income - U.S. properties in Canadian dollars

23,402

11,180

58,958

32,112

Net operating income before land rent arbitration expense

$57,636

$43,728

$161,029

$129,671

Land rent arbitration expense

(2,005)

(355)

(22,518)

(1,065)

Net operating income

$55,631

$43,373

$138,511

$128,606

Net operating income for the three months ended September 30, 2013,
increased by $12.2 million to $55.6 million compared to $43.4 million
in 2012, representing an increase of 28.3%. The increase was
predominantly the result of the acquisitions of the hotel properties
and U.S. multi-unit residential properties purchased in 2012 and 2013
which increased NOI by $13.6 million and was partially offset by the
increase in land lease arbitration expenses of $1.7 million as a result
of an arbitration decision received during the second quarter of 2013
with respect to the land underlying a mixed-used property located in
Toronto, Ontario.

CONSOLIDATED FUNDS FROM OPERATIONS ("FFO")

The Company's consolidated FFO includes funds available to
non-controlling interests and was calculated as follows:

Three months ended

Nine months ended

September 30,

September 30,

(In thousands of dollars, except for per share amounts)

2013

2012

2013

2012

Net income attributable to common shareholders

$68,146

$119,449

$190,745

$262,385

Items not affecting cash:

Fair value gain on real estate properties

(23,271)

(78,676)

(14,470)

(151,658)

Fair value (gain) loss on Morguard Residential REIT Units, net

(15,993)

(3,286)

(44,146)

6,867

Fair value gain on Morguard REIT 2012 debentures

(250)

—

(250)

—

Fair value gain on conversion options of the Debentures of Morguard
Residential

For the three months ended September 30, 2013 the Company recorded
consolidated FFO of $51.7 million ($4.08 per share) compared to $39.4
million ($3.07 per share) in 2012. The increase in FFO of $12.3
million is predominantly due to an increase in NOI from the
acquisitions completed in 2012 and 2013 of $13.6 million, an increase
in Morguard REIT's equity accounted FFO of $1.5 million, a decrease in
property management and corporate expenses of $1.9 million and a
decrease in current taxes of $10.7 million. These items were partially
offset by an increase in land rent arbitration expense of $1.7 million,
a decrease in management and advisory fees of $2.5 million, a decrease
in interest and other income of $1.7 million, an increase in interest
expense of $7.2 million and a decrease in other income of $2.1 million.
The change in foreign exchange rates increased consolidated FFO by
$478.

Morguard's share of consolidated FFO totaled $46.3 million or $3.66 per
share versus $37.8 million or $2.95 per share for the same period in
2012, which represents an increase of $8.5 million or 22.6%.

FOURTH QUARTER DIVIDEND

The board of directors of Morguard Corporation announced today that the
fourth quarterly, eligible dividend of 2013 in the amount of $0.15 per
common share will be paid on December 31, 2013 to shareholders of
record at the close of business on December 16, 2013.

Readers are cautioned that although the terms "Net Operating Income",
and "Funds From Operations" are commonly used to measure, compare and
explain the operating and financial performance of Canadian real estate
companies and such terms are defined in the Management's Discussion and
Analysis, such terms are not recognized terms under Canadian generally
accepted accounting principles. Such terms do not necessarily have a
standardized meaning and may not be comparable to similarly titled
measures presented by the other publicly traded entities.

The Company's unaudited condensed financial statements for the three
months ended September 30, 2013, along with the Management's Discussion
and Analysis will be available on the Company's website at www.morguard.com and will be filed with SEDAR at www.sedar.com.

Morguard Corporation is a real estate company, which owns a diversified
portfolio of 122 retail, multi-unit residential, office and industrial
properties comprising of 15,862 multi-unit residential suites, 1,220
hotel rooms and approximately 7.1 million square feet of commercial
leasable space. Morguard Corporation also owns a 44.2% interest in
Morguard Real Estate Investment Trust and a 48.7% effective interest in
Morguard North American Residential Real Estate Investment Trust.
Morguard also provides advisory and management services to
institutional and other investors. For more information, visit the
Company's website at www.morguard.com.